salary trends in moscow...increased salaries in 2015/2016? increase on median executives/ senior...

SALARY TRENDS IN MOSCOW

DECEMBER 2016

HAY GROUP REWARD DATA IN 2016

© 2016 Korn Ferry. All rights reserved 3

KORN FERRY HAY GROUP REWARD DATA IN 2016

20+Milion

people

25,000+organisations

115+countries

The world’s biggest pay and benefits database now has even better information to help you make pay decisions in 2016

This year we improved the way we deliver insights to nearly 30,000 HR specialists from arround the world using Hay Group PayNet.

Take a look at how we’ve grown in 2016:

HAY GROUP REWARD DATA IN 2016

4© 2016 Korn Ferry. All rights reserved

AFRICA25 countries

1,200 companies489,000 people

TunisiaPeople grow by

148%

AlgeriaCompanies grow by

67%

BotswanaPeople grow by

14%

LATIN AMERICA18 countries

2,600 companies3 milion people

NORTH AMERICA2 countries

2,700 companies4,6 milion people

PACIFIC4 countries

850 companies400,000 people

EUROPE43 countries


ASIA13 countries


MIDDLE EAST11 countries


United StatesPeople grow by

127%

ColombiaPeople grow by

20%

ChileCompanies grow by

65%

UkraineCompanies grow by

35%

GermanyPeople grow by

40%

SwedenPeople grow by

33%

OmanPeople grow by

41%

UAEPeople grow by

41%

HAY GROUP REWARD DATA IN RUSSIA IN 2016


622 companies 26 industries 58 cities and

regions

1 197 480

incumbents

22%

13%

12%7%

7%

6%

6%

8%

5%

5%

2%2%2%1%

2%

Retail and HORECA FMCG

Automobiles Oil & Gas

Logistics Hi-Tech

Chemicals Industrials

Banking and Finance E-Commerce

Agriculture Life Science

Natural resources Energy / Utilities

Other

INTERNATIONAL OVERVIEW

6

BASE SALARY INEQUITY RATE IS GROWING GLOBALLY


5.8 5.9 6.4

BASE SALARY LEVEL 20 (managerial)

BASE SALARY LEVEL 12 (entry level

specialist)

INEQUITY RATE IS A DIFFERENCE

BETWEEN:

2008 2012 2016

ACROSS ALL REGIONS


2008

2011

2014

3.1

3.2

3.3

USA + CANADA

WESTERN E.

NORTHERN E.

EASTERN E.

ASIA

MIDDLE EAST

AUSTRALIA + NZAFRICA

LATAM

7.6

7.8

8.2

7.7

7.9

8.6

3.2

3.4

3.4

4.9

6.7

7.0

7.4

7.7

8.3

7.2

7.1

7.3

2.6

2.6

2.73.1

3.1

3.1

SOUTHERN E.

4.7

4.9

5.0

AND IN RUSSIA


8.7 8.3 8.4

6.5 7.2 7.4Moscow

Russia

2008 2012 2016

843%

512%

408%384% 370%

115% 113% 107%

31% 29%

0%

100%

200%

300%

400%

500%

600%

700%

800%

900%

RUSSIAN SALARIES HAVE DEVALUATED COMPARED TO OTHER COUNTRIES


12. REFERENCE LEVEL

(ENTRY LEVEL SPECIALIST)

Russia = 100%

MANAGERIAL SALARIES WHICH USED TO BE ONE OF THE HIGHEST IN EUROPE HAVE ALSO DEVALUATED


20. REFERENCE LEVEL

(MANAGERIAL)

405%

182%161% 158% 151%

129%111%

86%

43% 39%

Russia = 100%

BUT AT THE SAME TIME RUSSIAN COMPANIES’ REMUNERATION STRUCTURE IS INLINE WITH THE WORLD


42%

59%

69%

69%

70%

73%

73%

75%

76%

76%

78%

8%

20%

15%

14%

20%

17%

14%

14%

13%

11%

12%

50%

21%

16%

17%

10%

10%

13%

11%

11%

13%

10%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

India

USA

United Kingdom

Kazakhstan

Russia

France

China

Germany

Finland

Ukraine

Poland

Base salary Variable pay Benefits and allowances

ON AVERAGE IN THE POPULATION

04SALARY DIFFERENTIALS

13

Moscow = 100%

Total Cash

MOSCOW REMAINS THE HIGHEST PAYING REGION IN RUSSIA


73%

61%

59%

81%

64%

73%

59%

65%

95%

78%

59%

99%57%

64%63%

Moscow 100%

Yuzhno-Sakhalinsk 98%

Saint Petersburg 80%

Vladivostok 72%

Ekaterinburg 69%

Tyumen 68%

REMUNERATION DIFFERS ACCORDING TO SECTOR…

84%

91%

101%

103%

104%

109%

124%

135%

83%

100%

103%

108%

94%

102%

110%

123%

Retail

Automotive

Industrial

FMCG

Hi-Tech

Banking and finance

Mining

Oil&Gas

Base Salary Total Cash

…AND ALSO JOB FUNCTION


107%

111%

106%

108%

104%

73%

84%

87%

87%

89%

109%

109%

107%

107%

105%

70%

83%

86%

87%

89%

Marketing

Project Management

Administration / Support

IT / Internet

Finance

Call centre

Research & Development

Health & Safety

Production

Quality

Base Salary Total Cash

CORE JOBS ARE STILL MORE DIFFICULT TO HIRE THAN SUPPORT ONES…


15%

24%

25%

29%

33%

Marketing

Production

Sales

Engineering

IT

23%

30%

31%

47%

72%

Sales

Marketing

Administration/ Support

Legal

Finance

TOP FIVE JOB GROUPS DIFFICULT TO HIRE TOP FIVE JOB GROUPS EASY TO HIRE

05SALARY MOVEMENTS AND FORECASTS



How many companies

increased salaries in 2015/2016?

Increase

on median

Executives/

Senior Management 77% 6,8%

Middle Management/

Seasoned Professionals83% 7,0%

Supervisory/

Junior Professionals85% 7,0%

Clerical/

Operational83% 6,5%

Total 87% 6,8%

SALARY MOVEMENTS IN 2016 ARE LOWER THAN INFLATION

*Including salary freezes

LOOKING BACK INTO INDUSTRIES UNEQUITY, WE SEE THAT SALARY INCREASES ALSO DIFFERS FROM SECTOR TO SECTOR

© 2016 Korn Ferry. All rights reserved

20

0% 20% 40% 60% 80% 100%

Oil & Gas

Banking & Finance

Natural Resources

Retail

Hi-Tech

Automobiles

FMCG

Industrials

Increased salary Frozen salary

6,9%

8,0%

6,9%

6,3%

5,0%

9,5%

7,3%

6,3%

A LARGE NUMBER OF COMPANIES HAVE NOT YET DECIDED ON SALARY INCREASES…


Plan salary

increases

Have not

decided

Increase

on median

Executives/

Senior Management 36% 59% 6%

Middle Management/

Seasoned Professionals38% 60% 7%

Supervisory/

Junior Professionals39% 59% 7%

Clerical/

Operational37% 60% 7%

Total 40% 56% 7%

*Including salary freezes

… WHICH IS ALSO DIFFERENT FROM SECTOR TO SECTOR

© 2016 Korn Ferry. All rights reserved

22

0% 20% 40% 60% 80% 100%

Oil & Gas

Retail

Banking & Finance

Natural Resources

Hi-Tech

Automobiles

Industrials

FMCG

Increase salary Frozen salary No decision yet

8,9%

7,4%

7,9%

6,5%

7,0%

7,5%

6,5%

8,5%

06OVERVIEW ON INCENTIVES

23

50%43%

7%

THE HIGHER THE JOB IS, THE BIGGER ROLE INCENTIVES PLAY


75%

15%

10%

80%

9%

11%

79%

9%

12%

CLERICAL/

OPERATIONS

SUPERVISORY/

JUNIOR

PROFESSIONAL

MIDDLE

MANAGEMENT/

SEASONED

PROFESSIONALS

SENIOR

MANAGEMENT/

EXECUTIVES

Base salary Variable pay Benefits and allowances

NON-SALES EMPLOYEE BONUSES DIDN’T REACH TARGET AMOUNTS


10% 10%18%

67%

13% 14%22%

100%

0%

20%

40%

60%

80%

100%

120%

Clerical Supervisory Middle Management Senior Management

Actually paid Target bonus

AS WELL AS SALES JOBS WHOSE BONUSES MORE AND MORE ARE BEING LINKED WITH PROFIT GROWTH AND MARKET SHARE

© 2016 Korn Ferry. All rights reserved26

12%16% 19%

45%

20% 20% 20%

50%

0%

10%

20%

30%

40%

50%

60%

Clerical Supervisory Middle Management Senior Management

Actually paid Target bonus

Profit growth

45% 50%

Market Share

16% 21%


OTHER INCENTIVE PLANS IN MOSCOW IN 2016

21%pay

Sales Commission

10%offer

Profit sharing

22%have

LTI plans

Companies increased the weight of corporate metrics in individual employee scorecard

This year some companies went for regressive commissions schemes

LTI remains a hot topic which raises big discussions but still not so many companies introduce such plans

Thank you for your attention

Olga [email protected]+7 495 363 66 30

© Copyright 2016, Korn Ferry

ALL RIGHTS RESERVED. Do not modify or create derivative

works from contents. Statement of Confidentiality: This proposal

and supporting materials contain trade secrets and proprietary

business information of Korn Ferry. This information may be

photocopied by CLIENT NAME for use in evaluating the project,

but is not to be shared with other organizations, consultants, or

vendors without the express written permission of Korn Ferry.

salary trends in moscow...increased salaries in 2015/2016? increase on median executives/ senior...

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